Iraqi oil minister Abdul Kareem Luaibi said yesterday that Organisation of the Petroleum Exporting Countries (OPEC) believed that oil price was approaching $120 per barrel but was not likely to go higher, a level that was "acceptable" and which would not hinder global growth.

"Global oil prices are moving towards $120 a barrel. We consider this an acceptable price that will not harm global growth," Luaibi told a news conference in Baghdad. "We think the price will not exceed USD 120 per barrel."

Oil prices were down yesterday as Brent crude fell below $115 a barrel as investors betting on rising prices with western intervention in Libya took profits anticipating a slowdown in air strikes.

Iraq is a member of the OPEC.

Luaibi added that Iraq had plans to increase its oil production to around 6.5 million barrels per day (bpd) by 2014.

"We have a plan for the next four years aimed at boosting the country's oil reserves and to increase the oil and gas production, "